Skip to main content

tv   Mad Money  NBC  December 4, 2015 3:00am-4:00am CST

3:00 am
"mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. sometimes, not often, but sometimes we get a day where it's just too crazy to buy stocks and really easy to sell stocks. that's what happened today. dow plunging 252 points. nasdaq nose diving. one of the worst days of 2015. why don't we use today's session as a teaching school, how sometimes it simply pays to sit on your hands and watch things unfold until they get less insane. that's always been my view on days like today.
3:01 am
back some of its losses. first, we didn't know the cause of the shootings in california. we would just once again wake up to the sadness of a mindless, tragic incident and lament the trauma. there were no other incidents, a la paris, where there were multiple ones. it was hoped this was not part of a coordinated terror attack. that emboldened buyers. to them it looked like a rebound was in the cards. you could argue we live in a terrible hurt when people take heart that san bernadino wasn't part of a larger mass attack. the market opened higher before we knew about a terrorist connection. we felt better because a european central banker who was famous for saying he would get
3:02 am
necessary, announced his next set of initiatives. he's synonymous with global growth, so big money likes ahead of time to be invested, perhaps as much as possible, even borrowing money to take advantage of what his next really positive move might be. he's creative fellow, they're always surprised to the upside. but this morning draghi didn't deliver. it made the big investors think draghi is out of options or is satisfied with how things are progressing. in fairness to that man, he is data dependent, and frankly the data out of europe lately has been strong, much of it stronger than the data from the united states, ironically. hey, look, we know this ourselves. i know it's anecdotal, but bph
3:03 am
the strongest market. draghi's less aggressive ways had two impacts. european markets were crushed. the dollar plummeted versus the euro. both developments were equally unexpected. both were totally out of sync with what the large macro hedge funds were expecting, guys who buy continents in stocks and bonds but not individual stocks so much. you know what, these hedge funds were caught long stocks and short the euro. these managers assumed the euro would go down and european stocks would reply because of that competitive advantage because of the strong dollar. they were wrong and panicked immediately, dumping stocks and buying euros to unwind both trades. smaller investors don't do that stuff. i don't want you to fret over it. big hedge funds are always making these snap decisions, then rapidly undoing them when
3:04 am
typically because they're using borrowed money. also, when you make a trade and the trade goes awry, you try to undo it as fast as possible. for some reason these same macro traders imported the negative, the selling of stocks, but they didn't import the positive, the decline in the dollar. why did that happen? more madness. there's no doubt in my mind that this 3% gain in the euro is usually positive for u.s.-based companies. you know i fret, we should therefore should take heart when the dollar is weaker. but too many investors were freaked out when draghi didn't deliver, so they decided the heck with everything, even as it was the dollar's biggest one-day fall against the euro in six years. that's lunacy. it's either a flat out
3:05 am
that happens, we know that, or a judgment that the euro will not stay as strong as it did, and once the short covering is over, the trend will reverse. another change today, a huge jump in our interest rates. remember, investors can and have been comfortable owning stocks in periods where we've gone over time higher rates. gentle, sloping, higher rates. however, this was the single biggest move up in interest rates in two years. that's unsettling. what triggered it? despite worries about a decline in manufacturing jobs, i'll talk more about that later in the show, i think there's widespread belief that the labor market is growing tight. we had strong jobless unemployment claims today. therefore the non-farm labor report coming out tomorrow will show there's genuine wage building. in other words, inflation will make these low interest rates a crummy investment.
3:06 am
the a decent return. they're betting bonds will lose value, yields will go higher, and they'll buy them back. billion of dollars in bonds are easy to sell and easy to buy back. when that happened, the pain reverberates into dividend stocks like the ones with high yields. utilities, real estate investment trusts. they were obliterated today. when they trade like bonds, they go down like bonds. i always tell you, when it comes to figuring out the value of stocks, it matters what the companies underneath are doing. are the companies bullish about the future? are they raising their forecast? typically if the answer is yes to all of these, then stocks go higher, right? however, there is a moment where it won't happen, when the market's worried about inflation, and investors don't want to pay up for a company's future earning streams. inflation erodes the value of
3:07 am
think what companies had the greatest potential, not near term but down the road. biotechs and the highest growth technology stocks without earnings. and that's what got pushed today. those with big earnings went up. given that we don't know when interest rates will be done going higher, what happens if figure tomorrow? maybe the fed will have to put through several rate hikes, sooner rather than later. then these stocks lose value very quickly. today was the prelude, perhaps. we're not done with the craziness. he saw the shorts locking gains just in case the saudis decided to stop pumping like mad, which caused the price of crude futures to rally. highly unlikely scenario, that the saudis blink, but nobody ever got hurt taking a profit. oil stocks themselves were all down. they were all down despite all going higher.
3:08 am
and not like a fox. crazy as in, i don't know which one's right so why not wait and see what opec says. kind of like waiting to see what tomorrow's employment looks like before taking action. the craziness makes you want to say, whoa, too crazy. finally there's the ultimate insanity, the sadness of terror and death in california. this market was going down, but in a rather subdued way, until some news outlets reported that the killers had terrorist advertise. in other words, they may not have acted alone and could be part of a larger conspiracy, something that people had thought wasn't the case. it's always difficult to link real life tragedy with something as pedestrian as money. i went home last night and said, i hate doing shows about money on days like today. i have to do it, it's my job. mayhem produces fear. fear produces selling. they go hand and hand. some days are too looney to sit
3:09 am
i don't blame anyone for taking, it's too darn crazy, i'm going to take money off the table, or just embrace less risk. when that happens, you get selloff. that's why i walked you through it. i don't know when it will end. remember, the selling always stops eventually. and with it come baby bargains thrown out with the earnings weakened bath water. let's go to richard in florida, please. richard. >> caller: a big booyah from miami, jim. >> good to have you on the show, richard. >> caller: first and foremost, thank you and your staff for all you do, we greatly appreciate it. >> my staff is unbelievable. when i walk in here, i always brighten because my staff is so great. i can't do that in a lot of other places, particularly not eagles games. go ahead. >> caller: my question is about
3:10 am
lot of management changes, also introducing a lot of new promotions, slashing their prices. i had recently purchased some shares, and they've gone down a bit. changes, it's still a good investment? >> i think it's a decent speculation. it matters whether the big dogs will put money in. they have to do so much to stay competitive with t-mobile, verizon, and at&t. that stock is at 34. you're in a tough group and you have to accept that the overall telcos. let's go to frank in new york. frank. >> caller: good evening, mr. cramer. how are you, sir? >> i am fine, how about you? >> caller: i'm well. i'm a long time fan, first time caller. my wife and i are both children of parents of that greatest generation and we've followed their lessons. i listen to what you say. i appreciate your wisdom.
3:11 am
life lessons and family. a wonderful hour every day. >> thank you. >> caller: my question involves popeyes. i have seen it go down to 15% to recover 20%. would you hold it or sell it? >> i would absolutely hold it, the quarter was great. when my mom was sick, they opened a popeyes, she says, go get me that popeye. i've always had a jones for the stuff. the quarter was good. more important, the fact is that the ceo has delivered consistently and taken share in her business. i'm backing her. and she runs popeyes louisiana kitchen. today was just too crazy. i know it was too crazy for a lot of you to sit tight. unfortunately we don't know when the madness will end. but it always does. you may be hoping for a fitbit season. i am.
3:12 am
portfolio? i'm sitting down with the ceo to find out. and foot locker versus finish line. one is on the right foot, one on the wrong one. i'm finding out why. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc.
3:13 am
head to now that we've gotten through black friday and cyber monday, many retail analysts are starting to anoint winners and losers. three different analyses have ranked fitbit as a major winner, even though its stock has been under some pressure because of insider selling. the positive comments haven't gone unnoticed. it closed up 2.62%. last week fitbit announced a major improvement to their technology ecosystem. now their devices can automatically track your body while exercising, something that should make them even more popular as a corporate wellness tool.
3:14 am
where it was a month ago. james park is the co-founder and ceo of james park. mr. park, welcome back to "mad money." good to see you, sir. >> good to see you. >> you have to distinguish between companies that have a hot product that's selling and companies that have a hot product that's selling where the promotional price isn't that discounted. analysts say it's selling and haven't had to give big discounts versus other consumer products. >> exactly. that's because of the strength of the fitbit brand and the loyal customer base we've built up over the years. >> are you seeing people move up in terms of cost of the devices, where people are going from elementary to the search? >> that's a trend we've seen, with the launch of more attractive devices to consumers today. >> i've been fixated on the
3:15 am
to my workers, they all might take care of themselves more. i was astonished to see that one of the department stores that called you out was target. >> exactly, target called out charge hr as one of the best selling devices of the holiday season. that's also a device that target employees are using a lot of as well. just recently, target announced they were making fitbit devices available to over 300,000 employees. their staff is using it, they're recommending it to customers. >> are they competing against each other? >> they're competing. that social aspect is a big driver. >> i thought it was interesting, best buy, which i regard as a place to buy hardware products, and macy's, more like apparel, both called out your company. is that because there's a design issue too, that people like the
3:16 am
>> i think it just speaks to the wide and broad range of appeal of what we're doing with consumers in the u.s. macy's, it speaks to the target customer, a lot of women shop at macy's and they're a core demographic for fitbit. >> ecosystem, you're now doing third party half what are people coming up with? >> there's a lot of innovative things going on. right now there's several thousand third parties that have integrated into the fitbit ecoask me. a big trend we're seeing is integration of fitbit into healthcare. we've seen several examples were developers have created smarter interfaces to make wearable data more presentable to physicians. >> are you international? >> it's across the world.
3:17 am
>> i talked to you about the conversion of the share base. you said this is what happens when people by nature have to liquify, and now we're going to a group of people who are users, the earnings profile. where are we along that continuum? i know there's another lockup expiring and people say, jim, why haven't you mentioned that, there might be a better opportunity coming, ginn what happened with the last one. >> what we're trying to do is orchestrate a soft landing and transition for everybody involved. that's why we did the follow-on offering. >> meaning which locked people up? >> which locked existing investors up for another 90 days. i think that was a great thing we did for the benefit of all shareholders. >> i know you're loath to talk about the competitor.
3:18 am
necessarily apple. people don't seem to get it. could you please explain that you can have parallel universes? >> exactly. we're all about digital health and wellness. i'm excited about what we're going to launch in 2016. we'll have products with more sensors, algorithms. they're going to be much more focus on fashion. and most importantly, there's going to be a lot of improvements in the software that give people more analytics, coaching, guidance. >> would that be the kind of thing that a major insurance company would say, this is the data i wanted, if people give the fitbit and you can show us the numbers, we can give you a better group rate? >> that's the holy grail of this category. that's going to happen. that's going to be a huge inflection point for the business. >> i agree. james park, co-founder and ceo of fitbit. my family loves it. we'll be back.
3:19 am
versus foot locker. these two leading retailers offer many of the same brands of athletic apparel. lately foot locker has been running wild all over their competition. will finish line be left in the dust or is the shoe now on the other foot? cramer laces up the trainers, next. i have asthma... of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine, i talked to my doctor and found a missing piece in my asthma treatment. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a long-term asthma control medicine, like an inhaled corticosteroid.
3:20 am
your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at our clothes can stretch out in the wash, ruining them forever. protect your clothes from stretching, fading, and fuzz. ...with downy fabric conditioner... it helps protect clothes from the damage of the wash. so your favorite clothes stay your favorite clothes. downy fabric conditioner. wash in the wow. we're all familiar with this, axe daily fragrances. but what you wouldn't have seen is this, axe dry spray antiperspirant. why are you touching your armpit? i was just checking to see if it's dry. don't, that's weird.
3:21 am
same business. totally opposite performance. i'm talking about finish line and foot locker. two major footwear retailers whose stock couldn't be more different. finish line is down more than how the heck is that possible? they sell shoes. why is foot locker outperforming finish line? finish line has roughly 1,000 stores in malls and foot locker has more than 3400 locations. both companies have seen the pace of their growth rate shrink down to the 3% range as of the last quarter. it doesn't seem to be about earnings growth. finish line's numbers have been better than foot locker's. but when you take a look at most important metric, same store sales, that's the most critical
3:22 am
foot locker is reporting much stronger numbers, increased by 8.7%. before that, 7.8%. before that, well, versus the last time that finish line reported, 1.5%. so you had that mid-high single digits versus 1.5%. foot locker is actually eating finish line's lunch in the most important metric out there. they've been beating them on this line item for ages. that's very impressive. what's the reason? finish line is struggling to stay on trend and capitalize on heavy demand for athletic shoes and apparel, in part because they're heavily based in the mall. the industry has been on fire. you buy basketball shoes and basketball rolls around.
3:23 am
numbers decelerate, where under armour and nike have seen their sales skyrocket. if you average out finish line's same store sales, it had its slowest back to school season since 2009. on the most recent conference call management said they expect numbers to remain in the low single digit range. the companies believes they were too slow to make the transition away from performance shoes to more casual shoes, which is what customers seem to be favoring these days. see if finish line can get the right merchandise. however, with so many stores in macy's, which is having a really hard time right now, and so many mall-based locations at a time when people don't want to go to the malls anymore, i wonder if itself. foot locker has been able to
3:24 am
sales, despite a crummy retail backdrop, consistently delivering the best comps in the retail sector. they have subbrands that make it easier to connect with their customers, east bay for serious athletes, lady foot locker. plus unlike finish line, foot locker has the merchandise people want. its latest strong numbers were driven by robust sales of running casual classics and boots. beyond that, while finish line is a strictly domestic operator, foot locker has an international presence. right now that business, like nike's, is very strong, with high single digit same store sales in canada and numbers in the low teens in the asia-pacific region. finish line, most of the stores
3:25 am
foot locker has managed to transcend this trend because the in-store experience is very important. most people still try shoes on before they buy them. foot locker has focused on remodelling its stores and they expect to have 45% of locations revamped by the end of that i 2017 fiscal year. we've seen over and over how these plans work. what else? after eight years of closing down underperforming stores, foot locker is once again expanding some of their auxiliary brands like the rapidly growing kids foot locker. the company fans to expand into underserved markets. europe, scandiava, they need more stores. they're growing a heck of a lot faster than finish line. plus there's the digital side of things.
3:26 am
business is more of a work in progress, foot locker's consumer segment increased by 30%. it's also worth mentioning that foot locker is much more important to the big athletic wear companies, like nike, because it has three times the numbers of stores than nike. nike is extremely important to the success of these companies. foot locker gets a lot more exclusive product than nike. oh, is that important. and the other companies too. over 50% of their merchandise has some sort of exclusivity associated with it, either specific colors or silhouette, the hottest stuff that you can't get elsewhere. foot locker carries the same style athletes wear on the court. finally, it's really important to note that foot locker has been aggressive about taking
3:27 am
investing heavily in systems, technology, training, to help improve the productivity and margins of the stores. now those investments seem to be paying off. where is finish line's execution is spotty. two companies, same business. foot locker is in a much better position with much better management. the craziest part of the story, even though foot locker's stock has dramatically outperformed finish line's, finish line has multiple earnings. while they're both extremely cheap, i think the best is foot locker. bottom line, just because companies are in the same industry, doesn't mean they're going to give you the same level of performance. the ability of management to make smart decisions and execute them correctly is incredibly important. avoid finish line until the company can get better. jose in california. jose? >> caller: jim, just wanted to
3:28 am
job, we appreciate your help, thanks for having our backs. >> thank you very much. >> caller: in rite aid, should i go ahead and hold on to this a little longer or sell it? >> which one? oh, rite aid? no, i think rite aid is up over time with walgreen's but it's going to take some government regulation so it's going to be a while. let's go to larry in massachusetts, please. >> caller: happy holidays to you, your family, and your impeccableable staff who always underpromise and overdelivered. >> they are u.p.o.d., underpromise, overdeliver. >> caller: disney, sending out dissident businesses can add value. i started buying disney after
3:29 am
subscriptions because the other businesses had great catalysts. but we don't see great cartoon characters running around at half time. what do you think of the chances? >> we don't want that. espn has lost subscribers, but it's a mosaic. when abc was doing badly, people gave up on disney. espn doesn't have as many subscribers. is "star wars" going to be as big as people expect? i don't know. some of the merchandise isn't selling as well as i thought it would. i think disney in the end is a good stock to own longer term, which i know has been very out of fashion way of looking at things, but i don't care. i think foot locker is a buy. line. mad tonight, it's changing the way we work and teaming up with tech. we'll start unwrapping some gains now. i've got the ceo. with an increase in rates
3:30 am
layoffs be looming in manufacturing? all of your answers in the lightning round. stick with cramer. you won't see these folksat the post office.they have businessesto run. they have passionsto pursue. how do they avoid tripsto the post office? mail letters, ship packages, all the services ofthe post officeright on your computer. get a 4 week trial,plus $100 in extras including postage anda digital scale. go to
3:31 am
covergirl is the easy way to draw attention perfect point liner smudge with sponge-tip to create a smokin' kitten eye lash blast mascara adds an instant blast of volume add a pow to your brow! wow! from easy, breezy, beautiful covergirl i've smoked a lot and quit a lot, but ended up nowhere. now i use this. the nicoderm cq patch, with unique extended release technology, helps prevent the urge to smoke all day. i want this time to be my last time. that's why i choose nicoderm cq. it seems that every year, we have to watch out for different types of germs. which is why it's important for your wipes to kill a broad spectrum of germs. lysol wipes kill 99.9% of germs, including 8 different types of cold and flu viruses. to help protect your family...
3:32 am
we're all familiar with this, axe daily fragrances. but what you wouldn't have seen is this, axe dry spray antiperspirant. why are you touching your armpit? i was just checking to see if it's dry. don't, that's weird. the first ever dry spray antiperspirant from axe. i take prilosec otc each morning for my frequent heartburn because you can't beat zero heartburn! ahhh the sweet taste of victory! prilosec otc. one pill each morning. 24 hours.
3:33 am
at what point do we decide that box, the cloud based storage provider and mobile business place form has punished already? it's basically been all downhill for the stock, which has pulled back, including today's 7% decline. the company gave robust guidance. after the conference call this morning the sellers came in as part of a broader decline. the stock managed to recover from its lows later in the day, unlike the rest of the mark, even though the company is not yet profitable, it's worth acknowledging box has become darn cheap versus the other cloud players that the company
3:34 am
should we view this weakness as a buying opportunity? let's take a closer look with the chairman and ceo of box. welcome back to "mad money." >> thanks, jim, i appreciate the time. >> do you find it kind of odd, this was a quarter where analysts say congratulations, great job, but in the end the stock goes down 7%. is it time to just say we're going to keep doing what we're supposed to be doing and forget about the stock? >> i don't know that we're going to forget about the stock. we are very focused on the long term growth rate of the company, the long term performance of the our platform. and so we do have a very long term view. we're going to let the stock do what it does. but i think we did put up strong numbers yesterday. 78.7 million in top line
3:35 am
top line billings for the quarter. revenue for this fiscal year. we're very happy about the we think we're kicking off, strong momentum going into next year. we'll let the stock respond as it does. >> you have some close partners, it's not often you have someone -- you have tim cook at box works, you do a huge business with ibm, partnerships, although maybe frenemies with microsoft. how are these doing in terms of bringing revenues to the bottom line? >> the partnerships take on two different types of strategies for us. the first is technical interoperability and the ability to get access to your files and content from any application in any environment. our partnership with microsoft is very important. if you're a customer of office 365 and you want to be able to access your files and edit them in realtime within office 365, we enable you to do that securely.
3:36 am
been able to work with them even though we compete on some of their product lines. this has become a channel distribution opportunity for us to really advance our solutions in enterprise content management. in the quarter we actually signed a 6,000-seat deal at a customer called sally beauty holdings because of the ibm partnership and the joint solutions we're developing. and we have over a hundred joint customers today in our sales pipeline because of that partnership. so we're going to do partnerships both for channel distribution as well as for really enhancing our technology and the interoperability of our product with other cloud solutions. >> given that these great opportunities, how do you balance the idea of the market
3:37 am
positive earlier yet at the same time that could constrain your growth? >> yeah, we spend a lot of time on this. our executive team, our board of directors, what we have shared is our commitment to positive free cash flow by the end of next fiscal year. that's the quarter ending january 2017. we are very committed to getting to positive free cash flow. that said, we're not taking our foot off the gas in terms of investing in growth. we're very focused on this once in a lifetime transition from on-premises data centers and on-premises computing to the cloud. you've seen this growth from workday, from, from service now, other major cloud products. and we want to do the same for enterprise collaboration. we see this as an important once in a lifetime opportunity. >> i'm glad you brought up we had mark bene recently. he started talking about the great sales they had, and just point black, said, this is
3:38 am
article called crazy like a fox in the "new york times," and here i am looking at dropbox enterprise's announcement. how has it been being public, did it make sense to go public when you did, did you wish you weren't public, and what are the >> yeah, i actually think we're pretty happy about being public. this drives a level of cadence and rhythm in the business that we think is healthy. it drives transparency that we think is very important. if you're the ceo of general electric or eli lily or southwest airlines, you want to make sure you're working with technical partners where you know they're going to be around for the long run. you understand they're sustainable businesses. you have a sense of the financials, of the performance of the company, the robustness of the company. for us being public dramatically
3:39 am
we're happy to be a post-unicorn company, as it were. i think it will be interesting from a silicon valley standpoint to watch over the next year or two what happens to a lot of the private companies. obviously the valuations have gotten a bit aggressive over the past year. we're very fortunate that we have a tradeable currency that is measured on a regular bases. we think it's a very difficult level of kind of transparency and kind of health in the business. >> i know it's not your job to opine on competitors, but when dropbox enterprise comes out and says, listen, you love us at home, wait until you come to the corporation, yet you have apple, microsoft, ibm. is it too late in this $10 billion last round? that was before you had all these partnerships yourself that really do box out dropbox. >> i'm certainly not going to spend time justifying dropbox's valuation. what i would say is we spent the
3:40 am
platform for the enterprise. we started the company ten years ago and today we serve 55% of the fortune 500. we have 4,000 businesses globally that use the product. you mentioned the partners we work with. we do think this is the land grab we've been investing in for the past few years. and fundamentally building a platform that secures critical corporate information and the various business processes that are around that corporate data is very different than building a consumer application aimed at the sort of consumer or personal market. we do think there's a market for both companies. but we're 100% focused on the enterprise. >> the analysts were congratulatory, good to see you, sir. >> thank you. >> these are young companies doing what's necessary to grow. you have to make up your own mind about what to do.
3:41 am
going to 3%. it's growing to the 30% and has a bright future. "mad money" is back after the break. round. age defiant. age agnostic. olay is a purveyor of ageless. only the best 1% of ingredients make it into our products. for transformed skin without expensive brands or procedures. it's the ultimate beauty victory. nobody has any idea how old you are. with olay, you age less. so you can be ageless. olay. ageless. it's the final countdown! the final countdown! if you're the band europe, you love a final countdown.
3:42 am
if you want to save fifteen percent or more on car insurance, you switch to geico.
3:43 am
>> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the i tell you whether to buy or when you hear this sound -- -- then the lightning round is over. are you ready, skee-daddy? north in -- mort in california. >> caller: i wanted to get your opinion on western digital. >> it's down 42%.
3:44 am
plays like the sky works, like intel, which is certainly better. ron in maine. >> caller: booyah! how about kmi? >> i have dan dicker doing stuff in a video at the street saying that it's a buy. carl english, a reporter doing nothing but kmi stories today, made me feel like i should worry. read her stuff, because you'll understand the worry about the dividend. let's go to cal in massachusetts. >> caller: you are brisk and witty and informative, a terrific combo. i'm calling about weibo. should i buy, sell or hold? is coming from, we care where it's going to. i'm not inclined to own anything from china now.
3:45 am
dave in connecticut. >> caller: how are you doing? >> all right. how are you? >> caller: good. my question is about sune, sun derson incorporated. they were up around $33 a share. i bought them when they dropped down to 10 after that crash a while ago. and now they've gone from a million something shares to like 80 million shares a day. >> we did a piece which said we liked it then a piece that said mea culpa. we said you should avoid it. the press i've been reading, whether it be all different news outlets, i don't feel good about it. i know that there are debt issues. and that -- do we have time for one more? one more. just one more, because i'm really in a forgiving mood here.
3:46 am
the patriots. >> caller: i was hoping for a game with no injuries. >> i would like that too. so would my fantasy team. go ahead. >> caller: i'm looking for a play in self driving cars. what do you think of mbli? >> it's one of the expensive stocks that's not going to hold up in this market. we have to go with tried and true. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. your clever moves won't stop the cold and flu. but disinfecting with lysol can. because lysol wipes and spray are approved to kill more types of germs than clorox. including those that can make you sick.
3:47 am
lysol that. olay regenerist renews from within, plumping surface cells for a dramatic transformation without the need for fillers with olay, you age less so you can be ageless olay. ageless. phil! oh no... (under his breath) hey man! hey peter. (unenthusiastic) ha ha ha! joanne? is that you? it's me... you don't look a day over 70. am i right? jingle jingle. if you're peter pan, you stay young forever. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. you make me feel so young... it's what you do. you make me feel
3:48 am
- good journalism is about telling a story from more than one perspective. embracing diversity can enrich your story by allowing you to see things from more than just one point of view. that's a story worth telling.
3:49 am
does the manufacturing economy still matter in this country? does it provide that many jobs? will lots of people be thrown out of work if it slows down more than it already has? that's what you should be concerned about on the eve of an all but certain rate hike from the federal reserve. we had an ism manufacturing reading of 48.6, down from 50.1 in october, and the worst number since june of 2009. that was back in the heart of the great recession. remember, anything below that level of 50 in this incredibly important institute for supply
3:50 am
contraction. the 48 number is shocking. shockingly bad. if the pearl funds rate were around 2%, we would be buying stocks in anticipation of a rate cut, after seeing this number. more important, those of us who have been around for a while recognize that while we would all be talking about how our economy could be thrown into a recession by aggressive action from the fed after this ism number, anything beyond a one and done rate hike could be considered a suicide mission for american manufacturing back then. the more important question might be, does it even matter anymore to the fed? are there enough manufacturing jobs left in the u.s. that it could really make an impact on the broader, far more service-oriented economy? we're not china. their current readings are roiling every manufacturing industry in the world. we were wondering if the federal reserve is simply making a bet that we're a service economy now
3:51 am
overheated service economy if the fed isn't careful and doesn't start raising rates. the fed can raise rates several times and it might not have the impact that many of us used to fear to the industry economy. let's face it, every since we decided to embrace globalization as a religion, we put the for sale sign on all the factories in our country. what can't be made more cheaply in mexico, with lower healthcare costs, more pollution, easy transit? what can't be outsourced to china, i don't know, vietnam? 25 years ago when we still had a robust manufacturing economy in this country, this looming rate hike from the fed could have been a disaster. in this new world, the only real marginal hiring being done in the industrial space was in the oil patch, and that's already game over, especially on the eve of an opec meeting where they will likely decide to keep
3:52 am
i know housing is overheated in some parts of the country. orders are nearing or at peak but the idea that mass layoffs in the manufacturing sector could somehow occur if the fed raises rates and then trigger a recession, i'm not buying it. i'm not that worried. why? because after decades of outsourcing our manufacturing jobs, maybe we just don't have masses left to lay off anymore. stick with cramer.'s get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. these are multi-symptom. well so are these. this one is max strength and fights mucus. that one doesn't. uh...think fast! you dropped something. oh...i'll put it back on the shelf... new from mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus. start the relief. ditch the misery.
3:53 am
i'm lucky to get through a shift without a disaster. my bargain detergent couldn't keep up. so i switched to tide pods. they're super concentrated so i get a better clean. 15% cleaning ingredients or 90%. don't pay for water, pay for clean. that's my tide. americans. we try to live healthy. but many of us don't know there are nutrients that can help support our metabolism. take new one a day healthy metabolism support multivitamin with chromium to help use carbs from food and b-vitamins to helpconvert food to fuel.
3:54 am
tough day. big numbers tomorrow. we'll take a new look. there's always a bull market somewhere and i promise to find it for you right here at "mad money." jeff: today on "flip my food," it's all about great taste in the kitchen and in your home. meet my good friends from hazelnut. announcer: today on "flip my food," chef jeff sizzles up some southern flavors with actor and entrepreneur bryan batt and his
3:55 am
gift shop in the heart of
3:56 am
3:57 am
3:58 am
3:59 am


info Stream Only

Uploaded by TV Archive on